DETROIT (WXYZ) — The recent tariffs imposed by President Donald Trump are being felt by industries across the economy. The tariffs on all imported vehicles, as well as tariffs on steel and aluminum, are poised to send the cost of new vehicles soaring. Retail will also be hit hard, especially clothing: many of the shirts, pants and shoes we buy are made outside of the U.S., especially in countries like China and Vietnam, which are facing some of the highest tariffs.
And then there's the coffee industry.
Unlike clothes and cars, coffee can not be made in the United States, meaning coffee shops have no choice but to bring it in from outside the country. So what does that mean for local roasters, and ultimately, the price of your morning coffee?
In Harmony Cafe has become a staple on Detroit's west side, and a shining example of how a business can return and thrive in a part of Detroit that had traditionally seen businesses leave over the years. But now tariffs are causing local Mom & Pop coffee houses like this to re-evaluate how they operate.
Importers and roasters are already dealing with near-record prices; now these tariffs will increase costs even more. Last week, the U.S. announced 46 percent tariffs on imports from Vietnam —that's the world's second largest coffee producer — as well as a 32% tariff on imports from Indonesia, the fourth largest grower. Central and South American coffee growers got a 10% tariff.
Tahlib and Keyona Barnes opened the cafe here at Dexter Avenue on Detroit's west side three years ago. Not only do they serve coffee and other items; it's a place where people come to play chess, read books and network.
The owners say they haven't been affected by tariffs yet. However, they know being a small business and not a big box chain like Starbucks or Dunkin' Donuts will force them to seek other alternatives to raise money so they don't have to pass higher costs to their customers.
“We don’t wanna raise the price," Tahlib said. "You know, there just certain things we can’t raise the price on you know. So, we might do more, you know, entertainment out the cafe. You know, we might do more spoken word.”
“We might have to change where we’re purchasing our items from. So, that’s making a big difference. But, still trying to keep the pricing low for our community," Keyona said.
We talked to a lot of people that come in and out of this coffee shop; there were some mixed opinions on whether or not tariffs are even necessary. But nearly everyone was in lockstep with the idea that, if In Harmon Cafe had to charge an extra dollar or two for a cup of coffee, they would pay it and continue to support a business that has helped this community move in the right direction.
